Page 17 - Banking Finance December 2020

ROUNDUP

Rs. 2 crore from ecommerce opera- Removing the need to store bank de- Under the system, companies have to
tions. The levy won't apply to Flipkart tails, the facility benefits partner SMEs raise e-invoices through a unique in-
as its ecommerce operations are car- in diverse sectors such as gaming, e- voice reference portal and generate
ried out by Indian-registered entity, commerce, retail, export and manu- the IRN (invoice reference number).
which is subject to local taxes. facturing, to transfer salaries, vendor Failing this, the companies concerned
payments, and commissions instantly. will not be able to move goods for busi-
Top 1,000 listed firms must Paytm Payout Links can be easily cre- ness-to-business (B2B) transactions.
ated and shared with customers, ven- The government plans to throw open
have risk management dors and employees in one go, said a e-invoicing for all companies from April
committee: SEBI release issued by the company. next year.

SEBI has proposed to make it manda- The receiver needs to simply open the Rs. 65,000 crore booster
tory for top 1,000 listed entities to set link and is automatically provided a list
up a risk management committee. of saved accounts such as Paytm Wal- for fertiliser industry, to
Currently, the top 500 listed entities, let, Paytm UPI and connected bank help clear subsidy dues
in terms of market capitalisation, are accounts, which can be chosen to re- The fertiliser industry has landed an
required to set up such a committee. ceive money instantly. unexpected pre-Diwali bonanza, with

"Considering the multitude of risks From Jan 1, e-invoicing the Finance Minister Nirmala
faced by listed entities, risk manage- mandatory for firms with Sitharaman, announcing an additional
ment has emerged as a very important Rs 65,000 crore subsidy, over and
function of the board. The Covid-19 turnover of Rs. 100 cr or above the Rs 71,309 crore already pro-
vided in the Union Budget for 2020-21.
pandemic has also reinforced the need more
for a robust risk management frame- Fertiliser companies were owed around
The government has made it manda-
work," SEBI said in a consultation pa- Rs 48,000 crore subsidy dues at the
tory for companies with annual turn-
per issued. The role and responsibility start of the current fiscal. The subsidy
over of at least Rs 100 crore to go for
of the risk management committee requirement for 2020-21 alone - based
e-invoicing for business to companies on the expected consumption of indi-
may include formulating a detailed
(B2C) transactions from January 2021. vidual fertilisers, cost of imported urea
policy which shall include a framework It has come out with a notification to
for identification of internal and exter- this effect. and feedstock (natural gas), rupee-dol-
lar exchange rate, etc - was pegged at
nal risks faced by the listed entity.
Currently, e-invoicing is mandatory for Rs 80,000-85,000 crore. The two
companies with annual turnover of at added up to Rs 128,000-133,000 crore.
Paytm rolls out payout least Rs 500 crore. While it was made
Given the subsidy provision of just Rs
links mandatory from October, the govern- 71,309 crore, it would have meant a
ment had put off penalty for errant
Paytm has launched Payout Links for further increase in arrears to Rs
companies for at least one month.
businesses, enabling them to instantly 56,000-62,000 crore, to be carried for-
Abhishek Jain, tax partner at EY, said," ward to 2021-22. "The Rs 65,000 crore
process payouts to customers, employ-
ees and vendors, without collecting Aligned to the recent communications extra allocation announced by the Fi-
by various government officials, e-in- nance Minister will wipe all
their bank details.
voicing has now been notified for com- outstandings due to the industry. The
As businesses struggle with the ever- panies with a turnover of Rs 100 crore additional expenditure will be approved
growing numbers of manual financial and above companies as well. With as part of the supplementary demands
processes, Payout Links offers seamless only 50 more days to go, these mid-size for grants in the upcoming winter ses-
payment integration for businesses to companies would need to soon gear sion of Parliament or when the revised
quickly send incentives and refunds to up their processes and IT systems to estimates for this fiscal are placed
customers through the easy and inex- enable compliance with this new in- along with the Budget for 2021-22," a
pensive method of a simple payout link. voicing regulation." fertiliser department official told. T

BANKING FINANCE | DECEMBER | 2020 | 17